EU will not seize frozen Russian assets held in Brussels

Belgian prime minister Bart De Wever has expressed relief after persuading the EU not to seize frozen Russian assets held at Euroclear in Brussels, with the bloc instead agreeing to borrow €90 billion on the financial markets to support Ukraine.

“Ukraine will receive an interest-free loan of €90 billion,” German chancellor Friedrich Merz announced after long discussions on Thursday. “These funds are sufficient to cover Ukraine’s military and budgetary needs for the next two years.”

Merz emphasised that Russian assets will remain frozen until Russia has made reparations to Ukraine.

“We already paved the way for this last week,” Merz said. “Ukraine will only have to repay the loan once Russia has made reparations.”

Belgian prime minister Bart De Wever (pictured) was outspokenly wary of using the frozen Russian assets in Brussels, especially in regards to potential Russian retaliation against Belgium.

De Wever had been demanding virtually unlimited guarantees from the EU since October to ward off the risk of early repayment or retaliation, and while the other EU countries said they were prepared to show solidarity, no concrete commitments to Belgium were on the table.

“This is a stable, legally robust and financially credible European solution,” De Wever said of the decision to use funding from financial markets instead.

“We are in familiar waters, which is essential to keep Ukraine in the fight and to maintain Europe’s long-term commitment to Ukraine. I don't think anyone in the European family wants to see that money return to Moscow.”

Belgium was under intense pressure during the ongoing discussions due to its exposure to the legal and financial risks generated by the proposal to use the Russian sovereign assets at Euroclear, the central securities depository based in Brussels.

After 15 hours of talks, first technical and then between leaders, the option of a joint European loan on the financial markets, favoured from the outset by Belgium, prevailed.

De Wever described the summit’s agreement as a victory "for Ukraine, for Europe and for financial stability".

He also emphasised the continued credibility of Euroclear, which was particularly concerned about the European Commission’s "reparation loan" project.

De Wever said he was proud that Belgium had been able to contribute to a solution by being "constructive and firm" and was pleased to note that "the voices of small and medium-sized states also count", as well as the "respect for legitimate national concerns".

The leaders of the 27 EU member states were under pressure to find a sustainable solution for Ukraine because it was at risk of running out of money by the first quarter of 2026.

The EU had previously committed to providing most of the financial and military support after US president Donald Trump decided to end American funding.

The agreement on the loan was reached by 27 countries, but the operation will only involve 24, with Hungary, Slovakia and the Czech Republic – three countries reluctant to provide financial support to Ukraine – being exempted.

Ukraine’s financing needs have been estimated at €137 billion, with the EU committing to cover two-thirds. The rest is to be provided by Ukraine’s other allies, such as Norway and Canada.